Airbnb CEO and co-founder Brian Chesky has clarified that a points-based loyalty program is not in the company’s future. Instead, he is considering more personalized options to reward ultra-loyal customers. Chesky believes that using points as rewards for loyalty is a subsidy that diminishes the value of the most valuable customers. He is exploring the idea of a subscription model similar to Amazon Prime, which he believes will generate more revenue to enhance service quality. Chesky is focused on getting to know their customers better so that every interaction with Airbnb can be more personalized and meaningful.
Despite not having a formal loyalty program, Airbnb has entertained the idea over the years. In 2016, Chesky asked for suggestions on what the company should launch the following year, with a loyalty program being a popular response. In 2018, he hinted at the possibility of a guest membership program on Twitter. During the 2021 Skift Global Forum, Chesky indicated that the company is actively exploring the development of a Super Guest program for highly loyal customers. In 2022, he once again sought input on potential focus areas, with a guest loyalty program receiving significant interest from respondents.
Mathias Coudert, a senior product manager at a hospitality management software company, agrees with Chesky’s stance on loyalty programs. Coudert views loyalty programs as primarily a cost and operational expenditure for brands. While hotels typically transfer this expense to owners, it would be challenging for Airbnb to do so. Additionally, Airbnb’s market dominance with minimal competition may lessen the urgency for a loyalty program. The company has partnerships that allow customers to earn points through various opportunities, such as earning miles with certain airlines and accumulating points on select credit cards. Chesky believes that the best form of loyalty is reflected in customer satisfaction with the product and service they receive, emphasizing the importance of providing a great experience to encourage repeat business.
Chesky’s vision for loyalty at Airbnb revolves around creating a more personalized and enriching experience for customers. By moving away from traditional points-based programs, he aims to establish a deeper connection with customers and understand their preferences and behaviors better. Embracing the concept of a paid membership model akin to Amazon Prime, Chesky believes that this approach can drive increased revenue while enhancing service quality. Despite the absence of a formal loyalty program, the company continues to explore ways to reward loyal customers and improve overall customer satisfaction.
The notion of whether Airbnb actually needs a loyalty program is a point of debate. Coudert’s perspective on loyalty programs as a cost and operational expense suggests that Airbnb may not necessarily require one, especially given its market dominance and limited competition. The company’s collaboration with airlines and credit card rewards programs provides opportunities for customers to accumulate points through various avenues, potentially obviating the need for a comprehensive loyalty program. Chesky’s primary focus remains on delivering exceptional customer experiences and fostering customer loyalty through product quality and service excellence.
In conclusion, while a traditional points-based loyalty program may not be in the cards for Airbnb, the company continues to explore innovative ways to enhance customer loyalty and engagement. By prioritizing personalized experiences and understanding customer preferences, Airbnb seeks to strengthen its relationship with ultra-loyal customers. As a leader in the travel and accommodation industry, Airbnb’s market dominance and existing partnerships offer alternative avenues for customers to earn rewards and loyalty benefits. Ultimately, the emphasis on customer satisfaction and product excellence underscores Airbnb’s commitment to fostering lasting relationships with its customer base.
